Kenya Inflation Rate Hits 5-Month Low of 4.7%


The annual inflation rate in Kenya fell to 4.70 percent in January 2019 from 5.71 percent in the prior month and below market expectations of 5 percent. It is the lowest inflation rate since August, as prices slowed primarily for food, housing & utilities and transport.

Year-on-year, prices slowed mostly for food & non-alcoholic beverages (1.62 percent vs 2.54 percent in December); housing & utilities (12.68 percent vs 13.47 percent) and transport (11.05 percent 14.34 percent). In addition, cost rose less for: clothing & footwear (2.80 percent vs 3.41 percent); furnishings (3.58 percent vs 3.95 percent); restaurants & hotels (3.36 percent vs 3.60 percent); miscellaneous goods & services (3.52 percent vs 3.90 percent); education (1.48 percent vs 4.93 percent); recreation & culture (0.90 percent vs 1.04 percent); alcoholic beverages & tobacco (6.48 percent vs 6.82 percent); education (1.48 percent vs 4.93 percent); recreation & culture (0.90 percent vs 1.04 percent) and alcoholic beverages & tobacco (6.48 percent vs 6.82 percent).

On the other hand, inflation accelerated slightly for communications (4.69 percent vs 4.66 percent) and health (4.52 percent vs 4.51 percent). 

On a monthly basis, consumer prices rose 0.35 percent, following a 0.65 percent gain in the previous month. Price pressure weakened as cost fell for transport (-1.40 percent vs 1.34 percent), mainly due to decreases in pump prices of petrol (-8.67 percent) and diesel (-7.86 percent). Also, prices went up at a slower pace for food & non-alcoholic beverages (0.78 percent vs 1.05 percent), namely maize grain (0.53 percent); sifted maize flour (0.75 percent); sugar (-2.56 percent) and beans (0.89 percent). Conversely, monthly inflation ticked up for housing & utilities (0.20 percent vs 0.07 percent), as a result of higher cost of house rents and cooking fuels. Partly contributing to this, were prices of domestic electricity consumption for 50 Kwh as well as for 200 KWh which increased by 1.68 and 1.15 per cent, respectively, attributed to increase in foreign and inflation adjustment charges.

Kenya Inflation Rate Hits 5-Month Low of 4.7%


Kenya National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
1/31/2019 5:09:59 PM